More and more clothing companies and shoe companies are moving towards the “road of tag.”

Life by selling tags is a brand’s sorrow. For a brand, once the road of tag, then the reputation it has established for many years may disappear because of quality problems, which is undoubtedly killing chickens and eggs. But for an enterprise on the edge of the delisting, what is the better way in addition to selling tags?

On March 25, Daphne International (HK0210) released a 2020 financial report. The financial report showed that Daphne’s revenue in 2020 was HK $ 364 million, a year -on -year decrease of 82.89%; net profit of returning to the mother was HK $ 224 million, a narrowing of 77.39%year -on -year.

As a generation of “shoe king” in China, Daphne accompanied the youth of a generation. Twenty years from glory to decline, on the one hand, this is Daphne’s own problem, and on the other hand, it also reflects the current situation of the industry.

So why do Belle International, Fugui Birds, Daphne brands have declined at the same time? Why can Li Ning and Anta rise against the trend?

After comparison, we found that most of China’s clothing companies and shoe companies have a common problem -disorderly and crazy expansion. Of course, expansion is the only way for the development of an enterprise. If the consumer industry wants to be bigger and stronger, the more the store is opened, the larger the scale.

However, the premise must be planned in batches, and the speed of unable to open a store is much higher than the speed of management.


2012 was the golden period of the shoe industry. Thousands of stores and tens of thousands of stores were standard for most of the shoe companies. Several stores in the same place are everywhere.


Under the disorderly competition, these companies may not realize that in the past, the business method of winning the store was impacted so quickly. In less than ten years, the industry was directly from summer to winter, and many shoe companies fell directly to the cold winter.

In 2014, Daphne, like most shoe companies, began to close the store and shrink.

For more than six years, Daphne closed more than 95%of stores, and Daphne closed 2,395 stores alone in 2019 alone. As of now, Daphne has only 242 stores left, and the closing tide is still continuing.

After analysis, I think there are three internal causes that cause Daphne’s current situation:

First, the disorderly expansion leads to too huge supply and marketing system. After the company’s growth rate slows down, a large number of products cannot be sold into the inventory of backlogs;

Second, the quality of the product. After Daphne’s listing in 1995, the rapid expansion led Daphne to ignore the quality and design of the product, which is one of the main reasons for Daphne’s rapid decline.

Third, the failure of e -commerce transformation. As early as 2009, Daphne actually tried e -commerce transformation. In order to build his own e -commerce platform “Light 100”, Daphne closed other e -commerce platforms. In 2013, the platform cash was broken, and Daphne also missed the best online development period.

In 2017, Belle delisted, and the rich bird went bankrupt in 2019, which brought invisible pressure on Daphne. Although Daphne’s situation was better than them, it was not actually strong.

The financial report shows that Daphne’s performance has been messy since 2015. It has been losing money for six consecutive years, with a loss of more than HK $ 4.2 billion.

In the past few years, Daphne has been adjusting and struggling in losses, but has little effect.

In 2019, Daphne proposed a “light asset” strategy and began to clean up a large amount of inventory. In terms of sales channels, Daphne decided to change the previous direct -operated ideas and develop into a partnership or franchise system, which is the so -called “OEM”.

However, Daphne’s efforts did not achieve good results. In 2020, Daphne’s “OEM” revenue was only 5.2 million Hong Kong dollars.

In 2020, Daphne invested 9.7 million Hong Kong dollars to improve the e -commerce platform and strengthened cooperation with social platform KOL, but the effect was very unsatisfactory. The financial report shows that Daphne’s e -commerce business revenue in 2020 was HK $ 148.3 million, a 31%decrease from HK $ 215.3 million in 2019.

For more than eight years, Daphne’s market value evaporated over 19 billion Hong Kong dollars, a decline of more than 99%. A generation of “Shoes King” ended.